Three Crude Tankers Exit Strait of Hormuz Amid Shipping Instability

Recent Tanker Movements Through the Strait

Three crude tankers, each carrying about 6 million barrels of oil, made their way through the Strait of Hormuz last week, with their AIS transponders turned off. The crossings were reported on May 11, based on data from Kpler and LSEG. The Very Large Crude Carriers (VLCCs) Agios Fanourios I and Kiara M each transported 2 million barrels of Iraqi Basrah crude on May 10, while the VLCC Basrah Energy had already departed on May 6 with a similar load of ADNOC Upper Zakum crude, which was discharged at Fujairah Oil Tanker Terminals on May 8.

Agios Fanourios I is en route to Vietnam’s Nghi Son refinery, with Kpler data indicating an expected arrival on May 26. This particular vessel faced at least two unsuccessful attempts to transit since its loading on April 17. Meanwhile, Kiara M also cleared the Strait of Hormuz on May 10, although its discharge destination remains undisclosed. The short journey of Basrah Energy to Fujairah suggests a logistical strategy focusing on storage, transfer, and subsequent sale outside the Gulf.

Iraqi Crude Exports and Market Implications

Kpler data confirms both Iraqi cargoes at 2 million barrels each, bringing the total for this latest Iraqi passage to 4 million barrels. Agios Fanourios I is managed by Eastern Mediterranean Maritime, while Kiara M is operated through entities based in Shanghai and the Marshall Islands. The recent crossings are part of a growing trend of ‘dark transits’ that have emerged as a response to regional shipping instability, allowing Gulf cargo to continue flowing despite challenges.

Earlier in April, three fully laden VLCCs had already traversed the strait, each capable of carrying 2 million barrels. This surge in traffic indicated that Asian buyers were ready to resume oil liftings once the passage was deemed secure. Current sailings indicate that access to the strait remains selective, hinging on timing, routing, and the flexibility of destinations.

Strategic Routing and Export Adjustments

ADNOC and its buyers have shifted part of their operations toward Ship-to-Ship (STS) transfers, utilizing storage and discharge points outside the Gulf to mitigate risks. On May 7, ADNOC exported at least 4 million barrels of Upper Zakum and 2 million barrels of Das crude on four tankers in April. Additional data from Kpler indicates that the tanker Hafeet moved 2 million barrels out on April 15 before transferring its cargo to Olympic Luck for delivery to Malaysia.

Despite these efforts, Reuters reports that ADNOC’s exports have fallen by over 1 million barrels per day from last year’s average of 3.1 million bpd, although Murban flows continue via pipeline to Fujairah. The strategic routing through Fujairah not only keeps oil volumes moving but also reduces idle time for laden vessels, providing more options for Asian refiners. Oil prices reflected the ongoing supply concerns, with Brent crude priced at $105.33 per barrel and WTI at $99.85 as of May 11.

Frequently Asked Questions

What are the recent movements of crude tankers in the Strait of Hormuz?

Three crude tankers carrying 6 million barrels of oil recently exited the Strait of Hormuz, with AIS transponders switched off.

What types of crude were transported by these tankers?

The tankers carried Iraqi Basrah crude and ADNOC Upper Zakum crude.

How are shipping routes adapting to regional instability?

Shippers are increasingly using dark transits and shifting operations to STS transfers and discharge points outside the Gulf.

What impact has this had on oil prices?

Oil prices have risen, reflecting supply risks, with Brent crude at $105.33 per barrel.

What is the significance of Fujairah in these operations?

Fujairah serves as a key storage and transfer point, allowing for continuity in oil exports.